Per Capita Payment

Synonyms

Capitation payment

Definition

Per capita payment is a payment method by which
physicians are paid per patient treated. This payment method aims to
assure time efficient treatment of each patient and creates
incentives for physicians to treat as many patients as
possible. This payment method contrasts with the
fee-for-service payment where payment
depends on the number of services provided. As payment systems of
physicians are seen as mechanisms to achieve policy objectives, such
as controlling health care cost or improving
health care quality, the per capita
payment seems to save more health care costs than the
fee-for-service payment method. But still little is known on the
impact of different methods of payment (per capita, salary,
fee-for-service) on the clinical behavior of the physicians.